ID theft scam hits investors

Shareholders in Guernsey-based investment group JZ Capital Partners must have thought it was their lucky day.

Around a week ago, some of them received a phone call advising them the company was the subject of a hostile bid and offering them $30 (£16) for each of their preference shares. These currently stand at around £2 each.

All they had to do was fill in an application form giving information relating to their passport, social security numbers and so on.

Guess what? It was a scam, and the company has hastily written to all its 2,000 investors to warn them not to reply.

JZ pointed out it had not authorised any third party to contact shareholders, and what was more, it was not the subject of a hostile takeover offer.

Apparently none of the JZ shareholders were tempted by the $30 to part with their personal details.

"The people targeted private individuals," said JZ chairman David Macfarlane. "I suppose they thought they were an easier touch. But it was such a crass attempt at fraud, anyone could see there was something a bit odd. As far as we know, no one fell for it."

He had no idea why the fraudsters picked on JZ, apart from the fact it has a class of preference share which is attractive to private punters.

As well as warning its investors to beware, JZ has also called in the full might of the law - well the Financial Services Authority anyway - to investigate. We eagerly await the outcome.